Saturday Aug 15, 2026
Saturday Aug 15, 2026
Thursday, 13 August 2026 00:08 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The Treasury Bill market saw a significant downward shift at yesterday’s weekly auction, with weighted average yields falling for a fifth straight week —this week’s decline being the steepest yet, as rates dropped across all three tenors.
The 91-day Bill led the retreat, shedding 33 basis points to settle at 9.44%. The 182-day paper followed suit, easing 21 basis points to 9.78% and the 364-day tenor with an 18-basis-point drop to 10.01%.
Demand remained robust as the Public Debt Department fully raised the entire Rs. 140 billion on offer, with each tenor meeting its target allotment. Investor appetite was robust: total bids came in at 2.76 times the amount offered, underscoring ample market liquidity chasing short-term Government paper.
The Phase II subscription across all three maturities is now open until 3:00 p.m. on 13.08.2026 at the WAYRs determined for the said ISINs at the auction. Given below are the details of the auction.
The secondary Bond market extended its rally today, with yields declining further amid sustained buying interest. Persistently elevated market liquidity and declining money market rates remained key drivers, while limited Treasury Bond supply in August continued to support bullish sentiment.
The rally was further reinforced by expectations of lower yields at yesterday’s T-Bill auction and the broader declining trend across Bills and Bonds. Sentiment also received a boost following Central Bank Governor Dr. Nandalal Weerasinghe’s interview with Reuters, in which he indicated that the Central Bank sees no need for further policy rate hikes this year, strengthening the bullish momentum (Source: Reuters, 11 August 2026).
The 15.09.27 maturity traded at 10%, while the 15.02.28 and 15.03.28 maturities traded at 10.20%. The 15.10.29 maturity traded at 10.65% and the 12.15.29 traded down the range of 11.75% to 11.65%.
The 01.03.30 maturity traded at 10.88%, while the 01.08.30 and 15.10.30 maturities traded down from 11.10% to 10.95%. The 01.02.31 and 15.05.31 maturities traded down from 11.20% to 10.95% and 11.25% to 11% respectively.
The 15.12.32 maturity traded down the range of 11.40% to 11.37%, while the 15.01.33 and 01.11.33 maturities traded down from 11.70% to 11.60% and 11.80% to 11.65% respectively. The 15.10.34 and 15.03.35 maturities traded down from 11.95% to 11.82% and 12.05% to 11.85% respectively.
On the longer end, the 15.08.36 maturity traded down in the range of 12.43%-12.30%.
In the money market, the net liquidity surplus remained elevated and was recorded at Rs. 249.51 billion. Rs. 139.51 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25%.
In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka mopped out Rs. 100 billion by way of an overnight repo auction at a weighted average rate of 8.70% as well as Rs. 20 billion through a 12-day term repo auction at the weighted average rate of 9%.
The ample liquidity continued to exert downward pressure on the weighted average rates on overnight call money and repos which were recorded at 8.79% and 8.84% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at Rs. 334.20/334.25 yesterday, with the Rupee appreciating further from Rs. 334.50/334.60 recorded the day on the previous day. The total USD/LKR traded volume for 11 August amounted $ 170.60 million.
(References: Public Debt Management Office - Finance Ministry, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
